salary

yomamma

Not a bad problem:)

I started a job there last month. I get monthly paid. I didnt have to pay any tax on my first pay. I am getting paid by a recruitment agency who pay me and then my company pay recruitment agency. I saw the invoice that they sent to my company.There was tax on it alright @23%.

Am I right in saying that i dont get taxed and my company pay for my tax? I have no payslip. This cant be right? Or does it have something to do with first pay?

I dont want to query it as I am getting more money than i thought.

fguihen

You dont want to query it. Lets play that out.

You dont query it for a year, maybe two, then someone notices an irregularity in their accounts, or you actually should have been paying more tax.

Now you potentially owe the company a lot of money, and if its an issue with tax then you will Definately owe the government a lot of money.

If you saved all this extra money, you should be ok, you pay it back. if you blew it all, what do you do then to pay it back? garnish your wages for the next 2 years?

Query it, get it sorted.

jahalpin

The 23% that the recruitment company have on their invoice is VAT. The recruitment company charges their clients VAT and the clients claim the VAT back from the Revenue

You should probably check with the payroll department of your employer and get them to give you a breakdown of the tax calculation. You would normally be liable for PAYE, PRSI and USC

Your employer is required to provide you with a payslip which details your pay and shows all deductions

allibastor

if it is only your first payslip leave it, as you may have credits built up. but anymore than that ask them

Mrs OBumble

allibastor wrote: »

if it is only your first payslip leave it, as you may have credits built up. but anymore than that ask them

The OP said they didn't get a payslip.

Definitely needs to ask now, IMHO.

allibastor

JustMary wrote: »

The OP said they didn't get a payslip.

Definitely needs to ask now, IMHO.

well i dont mean payslip, i mean his first payment period. sorry.

yomamma

Hi,

Ye I didnt receive a payslip but when thinking about it I must have built up tax credits. I am not good at all this tax conundrum but I worked for six months last year and was out of work for the other six months. Because I was working only 6 months would I have been paying a full year tax rate?Because I didnt work other 6 months are they refunding me ie: am i paying less tax now that I am back working in a new year? I think this is how it works but Ill request a payslip. If they did screw it up they can hardly take a lump sum off me in one go?

If this is the case should I expect a similar sum on my next pay?

Cheers!

the_barfly1

The company that you're working for have nothing to do with your payroll, if you have any queries, you need to contact the recruitment agency.
You're an employee of the recruitment agency, not the company you work for. These agencies usually send out payslips in the post

allibastor

you are obviously not used to working. you should always get a payslip or something to that effect, no matter what job you are in. it has all the details of your tax credits and allowances on it.

ring the agency right away one. and yes the government can ask you for the money, you know yourself that you should sort out tax as soon as possible. ignorance is not a defense of not paying tax, unless you work at the bank.

leeroybrown

The invoice the "company" received will have been for your employment costs (gross pay, employers PRSI and any additional expenses), plus the agency's arrangement fee, plus 23% VAT as you're being provided as a "service" to them. Your personal tax arrangements are with the "agency". The "company" only contracts you as a service from the "agency". Since you seem to be a normal PAYE worker I'm assuming that the "agency" are dealing with your deductions, etc and paying you as their employee. Talk to them about it.

coco_lola

Even if you have built up tax credits, you will still have to pay the Universal Social Charge. If there are no taxes on your pay at all, I would be concerned. Also, how do you know you are not getting taxed if you got no payslip? Is your salary hourly or annualy?

yomamma

coco_lola wrote: »

Even if you have built up tax credits, you will still have to pay the Universal Social Charge. If there are no taxes on your pay at all, I would be concerned. Also, how do you know you are not getting taxed if you got no payslip? Is your salary hourly or annualy?

i am on 16 euro an hour and what i got paid was 16 times hours net amount. If i multiplied my hours by 16 it worked out as 50 euro more than i got. So i got taxed 50 eur

monthly pay

yomamma

ok i got a payslip. i am getting 2574 gross pay and am only paying 182.11 tax.

prsi 80 eur, tax 8.80 eur and usc 92 eur.

On bottem of payslip it says for this period - tax credit - 275 eur.
"" "" "" "" "" Y.T.D - tax credit - 1100.00 eur.

I dont understand tax credits at all. Does this mean I have 1100 to knock off any tax that i am charged over next few pay cheques?

Cheers!

relax carry on

yomamma wrote: »

ok i got a payslip. i am getting 2574 gross pay and am only paying 182.11 tax.

prsi 80 eur, tax 8.80 eur and usc 92 eur.

On bottem of payslip it says for this period - tax credit - 275 eur.
"" "" "" "" "" Y.T.D - tax credit - 1100.00 eur.

I dont understand tax credits at all. Does this mean I have 1100 to knock off any tax that i am charged over next few pay cheques?

Cheers!

You are only paying 8.80 tax. PRSI and the USC are not classified as tax so you tax credits and rate band have nothing to do with them.
As you started in March or April, you had a build up of standard rate band and tax credits from the 1st of Jan. Thus will keep the tax you pay down for a little while but eventually it will rise to normal levels once you work your way through the build up.

The link below explains how the PAYE system works. You basically start with rate band which allows you to earn up to a certain amount each month at the 20% band. Anything over that is taxed at the higher rate 41%. You then deduct your tax credits from the tax you are due to pay to give you the tax you actually pay.
For a single person the yearly standard rate band is 32800 and the standard tax credits add up to 3300. Divide by 12 to get your monthly figures.

http://www.revenue.ie/en/personal/faqs/how-do-i-work-out-my-tax.html#

Mrs OBumble

yomamma wrote: »

Does this mean I have 1100 to knock off any tax that i am charged over next few pay cheques?

In short, yes that's exactly what it means.

Relax-carry-on's answer is 100% correct, though maybe longer than you a were looking for.